The US housing market has come a long way since its low point in 2012. According to Trulia’s latest Fastest Moving Markets report, homes are moving at a rampant pace with less than 50 percent of the nation’s housing inventory still on the market after 60 days, a 20 percentage point drop from the bottom of the market. This year’s market is outpacing 2016’s with year over year inventories toppling 8.9 percent more when comparing the pace of each year’s second quarter. This trend is pushing prices higher and pushing some homebuyers out of the market.
Who’s Feeling Squeezed?
First time homebuyers and homeowners looking to trade-up have fewer choices. Inventories of starter and trade-up homes shrank from 46.2% of the nationwide market in 2016 to 44.2 percent in 2017. The nationwide inventory diminished by more than 80,000 units of starter and trade-up homes year over year. Meanwhile, premium homes represent close to 56 percent of the nation’s inventory.
Gone in 60 Days
The majority of the swift moving markets are in the West. With many experiencing median home values surging past their pre-recession peaks. The San Francisco Bay Area metros along with Seattle ended June with less than 25 percent of their inventory. While not the fastest, the Phoenix-Scottsdale-Mesa metro is moving at a quick rate? with just under 40 percent of its inventory remaining after 60 days.
Fastest Moving Markets - Spring 2017
|US Metro||% of Homes Still on the Market After 2 Months|
|San Jose-Sunnyvale-Santa Clara, CA||20.00%|
|San Francisco-Redwood City-South San Francisco, CA||23.70%|
|Salt Lake City, UT||26.00%|
|San Diego-Carlsbad, CA||28.20%|
|Colorado Springs, CO||31.60%|
Buying in the Phoenix Metro
First time homebuyers looking for a Phoenix or Mesa, AZ homes for sale have limited choices. Prior to the Spring Market, start-up homes represented a meager 13.9 percent of the metro’s overall inventory. While starter home shoppers comprise 22.1 percent of Phoenix area homebuyers, homeowners looking to trade-up have it a little easier since 28.4 percent of Phoenix area homes for sale fall into that category. Trade-up home inventories still fall short since 32.8 percent of Phoenix’s homebuyers want a trade-up home. Cities like Denver, CO and San Francisco, CA are experiencing explosive price growth in the real estate sector with over 98 percent of their homes valued at greater than the pre-recession peak. The extremely short inventories are pushing prices upward. Conversely, the Phoenix metro was one of the hardest hit by the recession. Just prior to the recession, Phoenix home prices were overinflated and builders were building too much, according to the Home Buying Institute. Due to the metros deep-dive during the recession, the majority of Phoenix metro home prices are below their pre-recession peak. Fortunately, within the last few years, the Phoenix housing market has regained its health. Home prices are on the rise, jumping six percent from June 2016 to June 2017. However, with a median home value of $240,000, homes are still affordable for buyers looking into Gilbert real estate or searching for a Phoenix Condo. Market conditions are always changing, the best way to understand the market it to contact East Valley Property Management or keep a pulse on other aspects with tools like a mortgage rate calculator.